HE SUED EVERYONE! The Real Estate Disaster You Won’t Believe...

Описание: HE SUED EVERYONE! The Real Estate Disaster You Won’t Believe...

Show Notes → https://www.gbapodcast.com/ch45

Summary

A GBA Member Firm performed an environmental site assessment (ESA) for a commercial real estate developer. After the Member Firm reported the laboratory tests, which indicated unacceptable levels of a contaminant, the prospective purchaser reneged and demanded a return of its deposit. After getting a second ESA from another laboratory, the Member Firm reviewed the second laboratory’s results and agreed that the initial lab did not record the results correctly, and the contamination levels were not as severe. Both the developer and prospective purchaser sued the Member Firm who, in turn, sued the other laboratory. The Member Firm prevailed against the initial lab but recovered less than half the total amount of the settlement it reached with the developer and prospective purchaser.

Lessons Learned:

• Exercise Due Diligence When Hiring Chemical Analytical Laboratories
• Contract Carefully
• Keep Internal QC in Mind
• Realize That Small Projects Can Create Big Risks
• Provide Appropriate Oversight
• Try Mediation
• Written Agreements Are Essential